Section 350 - Company Liquidator to deposit monies into scheduled bank

Section 350: Company Liquidator must promptly deposit funds or face interest, penalties, expense liability, and removal risk

Section 350 mandates that a Company Liquidator must deposit all monies received in that capacity into a special bank account in a scheduled bank, unless the Tribunal permits use of another specified bank for the benefit of creditors, contributories, or the company. Retention by the Liquidator for more than ten days of sums exceeding five thousand rupees, or any higher amount authorised by the Tribunal, without satisfactory explanation, attracts consequences: payment of 12% interest on the excess retained, imposition of penalty, liability for expenses caused by the default, possible disallowance of part or all remuneration, and potential removal from office by the Tribunal.